TFI Beats Q1 Expectations as TL Flatbed Ops Boost Results

TFI posted revenue totaling $1.949 billion in the first quarter compared with $1.964 billion in 2025. (TFI International)

TFI International posted a stronger quarter than expected in the first three months of 2026, with acquisitions inked during the freight downturn that expanded the carrier’s industrial customer base, and rolling stock sales boosting profits.

However, no major acquisitions are in the cards for the previously deal-hungry carrier for the rest of 2026, as uncertainty over the freight market rebound remains, executives say.

TFI reported first-quarter 2026 net income of $43.3 million compared with $56 million in Q1 2025. The company’s adjusted EPS of 69 cents per diluted share beat Wall Street expectations of 61 cents.

Montreal-based TFI posted revenue totaling $1.949 billion in the most recent quarter compared with $1.964 billion a year earlier.

The decrease was primarily due to reduced volumes as a result of weaker end market demand, although this was partially offset by contributions from acquisitions, the company said.

TA Dedicated added Minneapolis-based warehousing and distribution company Triangle Warehouse to its operations in February for an undisclosed sum.

TFI also benefited from earlier purchases that diversified its portfolio, particularly deals such as the acquisition of then top-ranked flatbed carrier Daseke in late 2023 that increased exposure to industrial customers.

Truckload

Revenue at the carrier’s truckload division rose 1% to $672.8 million from $662.9 million in the year-ago period.

The unit posted an operating ratio of 92.7 in the three months that ended March 31, an improvement from 93.7 in Q1 2025.

A carrier’s OR provides insight on how well a company is balancing its costs and revenue generation. The lower the ratio, the better a company’s performance.

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Bédard 

The truckload division posted an average revenue per truck per week including fuel of $5,141, an increase of 8.2% from $4,753 in the year-ago period. TFI cited a rise in fleet productivity, particularly in the flatbed arena, and the departure of excess equipment as the reasons for the increase.

Also, TFI’s truckload unit saw a 7.1% decline in its average truck count to 6,939 in Q1 from 7,469 trucks in the year-ago period. Its trailer count averaged 21,298 in the most recent quarter, an 8.4% decrease from 23,261 trailers a year earlier.

“We’re starting to see a little bit of light at the end of the tunnel in terms of the demand. … I feel really good about where we’re at,” CEO Alain Bédard told analysts and investors.

Flatbed rate increases are also benefiting TFI, executives said.

“We’re renewing contracts in the U.S. flatbed in the high single digits to low double digits. We also have about 20%-25% spot exposure in the U.S. flatbed, and those rates are coming in higher,” Chief Financial Officer David Saperstein said during the April 28 earnings call after the market closed.

Less-Than-Truckload

Meanwhile, TFI’s less-than-truckload unit saw revenue decrease 2% year over year to $656.3 million from $679 million.

The LTL unit posted an operating ratio of 95.3 in Q1, compared with 93.1 in the year-ago period. Its revenue per hundredweight fell 2.4% year over year to $19.68 from $20.16, but average weight per shipment rose to 1,542 pounds from 1,538 pounds.

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TT Top 100 Logistics Companies

The largest 3PLs in North America continued to face volatile business conditions last year, from compressed margins to tariff-driven supply chain upheaval. Read more

That said, TFI’s LTL unit beat Bank of America’s OR expectations of 98.3 and the carrier’s outlook assumption of 97.8.

“If you talk about our LTL in North America, I would say that it’s been a long time since we have some organic growth in that sector. I would say that what we’re seeing now is slowly probably going to show up at least no negative growth in Q2 in our LTL. We believe that organically our LTL could grow maybe a few points? Which is going to be a first,” Bédard said during the call.

TFI bought the U.S. LTL unit of UPS in 2021, renaming it TForce Freight, which ranks No. 6 on the Transport Topics list of the largest LTL players in North America.

Both the LTL and truckload divisions are expected to see improved results in the second quarter of 2026.

Saperstein told analysts to expect an OR improvement of 600-700 basis points or between 6 and 7 from the LTL unit from Q1 to Q2 and between 2 and 3 from the truckload division over the same period. The company as a whole is expected to see an OR improvement of between 4 and 5.

Still, the strength of interest rates is likely to be key on whether there will be a sustained freight market recovery, said Bédard.

And uncertainty of any recovery is slowing down mergers and acquisitions.

M&A Activity on Hold

“The problem we have right now on M&A … is very simple, that everybody is waiting because everybody believes that things will get better. The seller says, ‘Why would I sell now? I’m going to wait. I’m going to wait because my numbers, my profitability will improve over the next 6-12 months or 18 months,’ ” said Bédard.

There certainly is unlikely to be a major deal for TFI, the company’s top executive said, despite admitting: “M&A is the blood of TFI. 2026 is probably going to be very quiet. But hey, listen, we’re getting ready.

Bédard said in July 2024 that substantial truckload and less-than-truckload deals were on the horizon.

By February 2025, Bédard was less sure about the timeline as the trucking downturn lengthened, although the CEO was just as sure that a substantial move was required when the time came.

TFI ranks No. 4 on TT’s Top 100 list of the largest for-hire carriers in North America and No. 38 on the TT Top 100 logistics companies list.